Financial Planners in Australia: An Examination of Loyalty

By Bruce Michael Clayton, Barbara Lynch and Michael Kerry.

Published by The Organization Collection

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Article: Electronic $US5.00

The purpose of this paper is to determine whether the demographic variables of age, gender and length of service, and the levels of the three independent variables of internal versus external locus of control personality dimension, individualist versus collectivist personality dimension, and perceived environmental uncertainty can be shown to be related to the organisational commitment (OC) and professional commitment (PC) of financial planners in Australia. The financial planners employed by one major Australian bank, during the period November to December, 2004 were surveyed using an instrument derived from established questionnaires. It was mailed nationally to 312 financial planners. A response rate of 36% was achieved, equating to 113 useable responses. The analyses revealed no statistically significant results at the 95% confidence level (p=0.05), that the level of OC and PC for respondents over the age of 35 differed from those under the age of 35. At the same level of confidence, females demonstrated a statistically significant higher level of OC than did their male counterparts, however there was no difference between their levels of PC. Financial planners employed for a period of over 3 years showed no difference in their levels of OC or PC than those employed for a period of less than 3 years (p=0.05). Respondents with an external locus of control displayed statistically significant lower levels of OC than those with an internal locus of control, however there was no difference between these groups in their levels of PC (p=0.05). Such findings contribute to our understanding of the organisational and professional commitment of financial planners, and have implications for employers in terms of hiring and retention of employees. The analyses are also important from a public policy perspective in an era of increasing attention to, and likely increased regulation of, the financial planning industry.

Keywords: Organisational Commitment, Professional Commitment, Financial Planning, Financial Planners

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 3, pp.13-24. Article: Print (Spiral Bound). Article: Electronic (PDF File; 600.936KB).

Dr. Bruce Michael Clayton

Associate Professor, School of Accounting, Economics & Finance, Faculty of Business & Law, Deakin University, Geelong, Victoria, Australia

Dr Bruce Clayton is an Associate Professor in the School of Accounting, Economics & Finance at Deakin University, Australia. Bruce's research interests are in the area of the professions in the financial services sector, and he is widely published.

Barbara Lynch

Associate Lecturer, School of Accounting, Economics & Finance, Faculty of Business & Law, Deakin University, Warrnambool, Victoria, Australia

Barbara is an academic in the school of Accounting, Ecobnomics & Finance, and her research interests are in the area of the financial services professions, and legitimacy theory.

Michael Kerry

Senior Lecturer, School of Accounting, Economics & Finance, Deakin University, Australia

Mike is a Senior Lecturer in Financial Planning, with research interests in financial literacy education and the financial planning profession.

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